Forex-Metal Daily Analysis -12/04/2012

A decrease in the yield of Spanish and Italian government bonds provided support for the Euro currency.


Asian and European trading sessions:

Euro: The EUR / USD pair traded near the support level of $1.3066 at the beginning of the Asian trading session. From this point the couples was able to recover and rose to $ 1.3132 and then recorded its daily high near the resistance level of $1.3150 at the European session. Yesterday, ten-year bond yields of Italy, the third largest economy in Europe, rose by 23 basis points, reaching 5.69 percent, its highest level since February 17. This sharp rise in yields triggered market participants’ fears of thinking of new round of crisis in Europe. However, today, support the single currency was provided by a decrease in the yield of Spanish and Italian government bonds.

British Pound: The GBP / USD pair again, just like in yesterday’s trading, tried to copy the EUR / USD trading dynamics during both sessions. The couple firstly fell to lows of $1.5850, but later strengthened to the highs of $ 1.5935 at the end of the European trading session.

Japanese Yen: The USD / JPY pair recovered after yesterday’s fall during the Asian trading pair. The USD / JPY couple tested a high of Y80, 94 for two times.

Australian and New Zealand dollar: These currencies rose against their competitors on the backdrop of rising futures indices and increasing demand for risky assets.

American trading session:

Japanese Yen: Amid speculation that the Bank of Japan is preparing another monetary easing in this month, the yen weakened against almost all of the 16 most traded currencies.

British Pound: Today’s report on March Retail Sales in UK showed a growth as it was reported by the British Retail Consortium. In details, the Retail sales grew by 1.3 % on year on year basis. In January and February, a decline of 0.3%.These news provide some support for the British currency and the GBP /USD pair went to test the highs of previous session , the level of $1.5931.

Oil: The Oil rose after the U.S. Department of Energy reported a reduction of Gasoline’s inventories. The cost of WTI May futures rose to 103.1 dollars a barrel on the NYMEX.

Gold: The Gold prices were stable today after rising for four consecutive trading sessions. The May’s futures of Gold traded in the narrow range of $ 1652.8 – $ 1662.2 per ounce on the COMEX.


Technical analysis for 12/04


The pair has declined to 1.30277 and aiming to 1.31674. 
Resistance: 1.31674, 1.33143, 1.34882 
Support: 1.30277, 1.28630, 1.26897 
The pair has risen to the Moving Average (500) at 1.59202. 
Resistance: 1.60322, 1.62050, 1.63316 
Support: 1.58543, 1.56722, 1.54842 
The pair has reached 0.92026 and rolling back to 0.91079. 
Resistance: 0.92026, 0.93069, 0.93949 
Support: 0.91079, 0.89635, 0.88418 
The pair is aiming to the support level at 80.438. 
Resistance: 81.399, 82.219, 83.065 
Support: 80.438, 79.707, 79.070 
The pair tested the Moving Average (500) at 1.02558 and stayed above this level. This may bring pair to 1.04407. 
Resistance: 1.04407, 1.05332, 1.06164 
Support: 1.03535, 1.02558, 1.01744